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Raju and Prasad Chartered Accountants Raju and Prasad Chartered Accountants
`
November 2017 Volume 4, Issue 9
FOCAL POINT Newsletter from Raju and Prasad Chartered Accountants
Contact us:
Email : [email protected]
Website: www.rajuandprasad.com
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Dear Reader,
Our editorial comments for this month are on “Recapitalisation of Banks”.
This month we have covered ‘’ Cinema Industry” in our Industry Review
which is a coincidence of V Shantaram’s 116th
Birthday.
Please give your views and also send this newsletter to your friends.
Regards
For Raju & Prasad
Chartered Accountants
M Siva Ram Prasad
Partner
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Contents
Contents .................................................................................................................................................................................................. 2
Editorial .................................................................................................................................................................................................... 4
Recapitalisation of Banks .................................................................................................................................... 4
Industry Review ................................................................................................................................................................................ 6
Cinema Industry ...................................................................................................................................................... 6 Introduction: .................................................................................................................................................................................................................. 6 History: .............................................................................................................................................................................................................................. 8 Major Events in evolution of Indian Cinema Industry............................................................................................................... 10 Hindi Cinema ............................................................................................................................................................................................................... 12 Telugu Cinema: ......................................................................................................................................................................................................... 13 Tamil Cinema: ............................................................................................................................................................................................................ 14 Bengali Cinema: ....................................................................................................................................................................................................... 15 Marathi Cinema: ....................................................................................................................................................................................................... 17 Kannada Cinema: .................................................................................................................................................................................................... 17 Offbeat Cinema ......................................................................................................................................................................................................... 18 Film Society Movement in India: ................................................................................................................................................................ 19 Children Film Festival: ........................................................................................................................................................................................ 19 Studios: ........................................................................................................................................................................................................................... 19 Exhibitors: ..................................................................................................................................................................................................................... 20 Government Initiatives: ..................................................................................................................................................................................... 21 Contribution to the economy: ....................................................................................................................................................................... 22 Incentives: .................................................................................................................................................................................................................... 22 Income tax and Entertainment tax : ...................................................................................................................................................... 23 Problems and Challenges: ............................................................................................................................................................................... 24
Policy Watch .................................................................................................................................................................................... 26
Company Law .......................................................................................................................................................... 26 Relaxation of additional fees and extension of last date of filing FORM AOC 4 and AOC 4 (XBRL) .... 26
Indirect Taxes .......................................................................................................................................................... 26 Waiver of late fee payable for delayed filing of FORM GSTR-3B for Aug & Sep, 2017. ................................ 26 Exemption from payment of Goods and Services Tax under reverse charge mechanism covering
under section 9(4) of CGST Act, 2017. ................................................................................................................................................. 26 Notified Deemed Exports under Section 147 of CGST act, 2017 .................................................................................... 27 Rate of Central tax and integrated tax prescribed for supply of taxable goods by a registered
supplier to a registered recipient for export: ................................................................................................................................... 27 Exempt persons making inter-State supplies of taxable services from registration under section
23(2) .................................................................................................................................................................................................................................. 28
SEBI............................................................................................................................................................................... 28 Criteria for Settlement Mode of Commodity Derivative Contracts ................................................................................. 28 Review of Block Deal Window Mechanism: ........................................................................................................................................ 28
Direct tax ................................................................................................................................................................... 29
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Notified place of Historic importance and a place of public worship of renown throughout the state
of Tamil Nadu ............................................................................................................................................................................................................. 29 Notifying the recognised association for the purpose of Section 43(5) of income tax act, 1961 ......... 29
Verdicts ................................................................................................................................................................................................. 30
Direct Tax................................................................................................................................................................... 30 As the Income Computation and Disclosure Standards (ICDS) are contrary to the judicial
precedents laid down to interpret and explain the statutory provisions contained in Income tax act,
the ICDS to such extent it is contrary is not valid. ..................................................................................................................... 30 Quoting of Aadhaar Number is mandatory as per section 139AA of the income tax act, 1961 while
filing the return of income ............................................................................................................................................................................... 30 Non Resident Assessee can’t be taxed in India on the ground that support services has been
received from the Indian subsidiary as there is no permanent establishment in India. .............................. 31
1►►► PHOTOGRAPH OF THE MONTH ......................................................................................................................... 32 Ibis and Spoonbill in the company of Crocodile at Ranganathittu ………………………………………………….32
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Editorial
Recapitalisation of Banks
n 24th October, 2017, Government of
India announced Recapitalisation of
Banks. This is a commendable step to help the
Banking Sector, which is stuck with NPAs and
shying away from releasing credit and rather
worried about the Balance sheet ratios. While
the regulatory mechanism is essential to
monitor the banking sector, the overall
growth in the country is dependent on Bank
credit. Recapitalisation is not new for India. It
is done in 90’s. Indian Bank was the first to get
such help and presently its Balance sheet is
better than other banks.
In USA Troubled Asset Relief Programme (TARP)
was introduced in 2008. Similar programs were
there in other countries also.
Government of India proposed that 2.11 Lakh
Crores to be pumped into this sector over a
period of two years. The fund to be kept at the
disposal of Banks is 18,000 Crores of Budgetary
allocation, 1,35,000 Crores of Bonds and 58,000
Crores by way of public offer of shares.
Government may utilize the surplus transferred
from Reserve Bank of India, Dividend from
Banks and RBI for this purpose.
O
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The effort is to provide the gap of regulatory
capital due to write offs of NPAs and growth
capital to further multiply the fund by way of
business. This is only to restructure the bank’s
debt equity leverage. Government proposes
to issue 7% Bonds with ten year time, and
banks are required to subscribe to this and out
of this cash inflow 18,000 crores of shares will
be issued to Banks. This is a merry go round to
show that there is no fiscal deficit except
interest payment. By going to public offer,
equity exposure to the Government of India
will get diluted. If the interest rates on deposits
are further reduced, 7% Bonds will be a costlier
fund raising mode. If the repayment of bonds
is not staggered, it will hit the economy at a
particular time.
If Bonds are tradable, it is a welcome measure
for bond markets. But there is need to make
Bond Market active to provide a win-win
situation for Banks and other QIPs.
In this exercise there are weak banks whose
market capitalization is less than the capital
requirements. Is it easy for them to raise equity
through public offer or again it fall will back on
government or government agencies?
When NPAs are ranging from 8% to 10%.
Whether the quantum of recapitalisation is
sufficient?
What is the action plan for recovery of
NPAs other than Insolvency and
Bankruptcy code(IBC) implementation?
Whether IBC will help the banks if their
recovery is poor or restructuring is the
better method with the right of
recompense?
If IBC is implemented whether it is a death
knell to certain industries whose problems
are cyclical?
Unless there are parallel measures for
industrial growth, recapitalisation will not
yield results for Banking sector or the
economy.
Ironically the funding is through “Indra
Dhanush” scheme of Finance Ministry, while
the health ministry has implemented mission
“Indra Dhanush” for intensified vaccination.
Are we to draw conclusion that
recapitalisation is a type of vaccination for
Banking sector.
In anyway Indra Dhanush appears only
when there is sun and rain which means
credit growth and Industrial growth.
M Siva Ram Prasad
Indra Dhanush appears only when there is sun and rain which means
credit growth and Industrial growth
Is Recapitalisation a type of vaccination for Banking Sector?
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Industry Review
Cinema Industry
Introduction:
Cinema in India provides entertainment to
all sections of people at affordable costs.
The Industry can be divided into Film
Production, Cinematography, Film
Processing, Studios, Exhibition theatres,
Music and sound, Film journals,
Advertisement etc., The industry provides
opportunity for equipment manufacturing,
processing, printing, publishing and
employment in all these areas.
For many decades, the industry did not get
the support from the government in spite of
its contribution to the economy. This is a
powerful medium and motivated public
opinion on many social issues and
propagated the Indian Freedom
Movement. Khwaja Ahmad Abbas wrote
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to Gandhiji in 1939 not to derogate this
medium like Gambling, Satta, Horse racing
etc.
In the initial years female roles were played
by males. Acting in cinemas by women was
considered a taboo. Initially Anglo Indians
and European females acted in Indian
Cinemas. Some of the well-known names
are Thelma, Yvonne Wallace, Ruby Meyers,
Zebunnisa, Gohar, Zubeida in Hindi
Cinemas and Marien Hill, Mrs Aelliot in South
Indian Cinemas. Of Course in later years
well educated Indian Ladies like Durga
Khote B.A. and Leela Chitinis M.A joined the
film field as leading ladies.
The cinema in India with its history of more
than 100 years had moved from silent
cinema to talkie cinema, Black and white
cinema to color, digital, animation, 3D and
VFX.
Pic from Raja Harishchandra
Though the cinema is spread all over the
country and are produced in various
languages like Telugu, Tamil, Kannada,
Bengali, Malayalam, Marathi, Gujarati,
Assamme and Bhojpuri, Hindi cinema is
considered as a National cinema. However
there were years when number of Telugu
cinemas produced had out-numbered
Hindi Cinemas.
Originally the Indian Cinemas were
produced in many studios of Salem,
Coimbatore, Kolhapur and Pune. Finally
the industry settled down in Bombay
(Mumbai), Madras (Chennai), Calcutta
(Kolkata), Hyderabad and Bangalore.
The industry is striving to keep up the
cultural heritage, social conscience,
history, art and music and through its multi-
lingual dimensions, it is promoting national
integration.
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Films Produced
S. No. Language 2013-14 2014-15 2015-16 2016-17
1 Hindi 252 297 340 364
2 Telugu 334 301 275 294
3 Marathi 117 128 181 117
4 Tamil 306 303 291 304
5 Bengali 124 157 149 163
6 Kannada 142 159 204 220
7 Punjabi 47 38 45 38
8 Bhojpuri 87 96 67 102
9 Gujarati 29 39 45 73
10 Malayalam 200 195 168 156
11 Assamese 17 19 20 16
12 Others 123 95 118 139
Total 1778 1827 1903 1986
Source: Film Federation of India – Certified Films
History:
Auguste Lumiere and Louis Lumiere
(Lumiere Brothers) started screening the
movies in Bombay on 7th July 1896 for British
audience. Inspired by the Bioscope
Harishchandra, Sakharam Bhatvadekar
(Savedada) imported the equipment and
started shooting motion pictures.
Feature films in silent era (Mookie Cinema):
Pundalik in Marathi by N.G Chitre and RG
Torney in 1912.
Raja Harishchandra in Marathi by
Dhundiraj Govind Phalke (Dadasaheb
Phalke) in 1913.
Keechaka Vadham in Tamil by
Rangaswamy Nataraja Mudaliar in 1919
Dadasaheb Phalke
Bilwamangal, in Bengali in 1919, by J.F.
Madan.
The silent era continued upto 1930 in India.
Nearly 1000 cinemas are said to be
produced and most of them are lost and
some of them are with National Film
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Archives. Cinema backed with sound track
started in 1931.
Sound made a difference between silent
and talkie cinema. There was a lot of
criticism on sound that it has distorted the
natural performance. The transition was
possible due to technological
advancements and “Show boat” was the
first movie with 40% of sound and Alam Ara
in 1931 was the first full length talkie cinema
with dialogues, sound track, background,
music and songs followed by Kalidas
(Tamil), Bhaktha Prahaladha (Telugu),
Jamai Sashti (Bengali), Shirin Farhad (Hindi).
Alam Ara was produced by Ardeshir Irani
in Hindustani language and Devika Rani is
called the first lady of Indian
VFX Effects in the movie Life of Pi
V Shantaram
Cinema.Kamalabai Gokhale was the first
woman to act in silent movies. Talkie
cinemas became popular with
technological innovations over a period of
time and as a result natural dialogue
delivery is shifted to dubbing, Original
singing is changed to play back singing.
Though the critics were unhappy, the
commercial success swayed over
everything else.
In this journey of a century, this sector
produced good movies, talented actors,
Directors, Singers, Music Directors,
Cinematographers, established studios
and process Centres of international
standards. Finally the industry status was
accorded in 2001 to this sector. Banks and
financial institutions started financing the
industry which was originally funded by the
money lenders.
Alam Ara was produced by Ardeshir Irani in Hindustani language
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Major Events in evolution of Indian Cinema Industry
Year Event
1896 July 7, Lumiere Brothers Presented the first Cinematograph show at Watson's Hotel,
Bombay
1899 An Englishman, Major Warwick, Brings moving pictures to Madras
1902 JF Madan acquires equipment from pathe Freres, launches BioScope in a tent on the
maidan in Calcutta
1905 Jyotish Sircar, Cameraman, covers demonstrations against Lord Curzon’s Partition in
Bengal
1907 Pathe Freres Set up office in Calcutta for supplying films and equipments
1912 Two amateurs, NG Chitre and RG Torney attempt a narrative film 1500 feet in length, of a
Marathi play, Pundalik
1913 On May 3, Dadasaheb Phalke released India's first feature length film "Raja
Harishchandra"
1917 JF Madan produces Satyavadi Raja Harishchandra - an Elphinstone Bioscope company
Production
1918 Patanakar Friends and Co produce first 4 part serial, Exile of Shree Rama (Rama Banvas)
1918 Indian Cinematograph act passed providing for censorship of films and licensing of
cinema
1919 R Nataraja Mudaliar makes first silent film, keechaka vadham in Madras. JF Madan
Releases Bilwamangal in Calcutta featuring famous stage singer actress Miss Gohar
1920 Maharashtra Film Company of Kolhapur founded by Babu Rao Painter releases its first
film
1922 Entertainment tax introduced in Bengal and Bombay
1927 Government of India appoints a committee "The Indian Cinematograph Committee"
under the chairmanship of T Rangachari
1930 On March 7, first film society in India known as Punjab Cinema Art Society, Formed in
Lahore with Sir Siyanda Hyat Khan as President
1931 First Full Length Talkie Movie "Alam Ara" is released by Ardeshir Irani of Imperial Film
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1932 Motion Picture Society in India is formed in Bombay
1933 Shantaram takes Sairandhri, the first colour film, for processing and printing to Germany
1934 East India Film Company's Seeta directed by Debaki Bose shown a Venice Film Festival
1935 Himanshu Rai sets up Bombay Talkies as a Joint Stock Company.
First Trade Journal Started by Motion Picture Society of India.
First all Indian Motion Picture Convention is held in Bombay
1936 Second All India Motion Picture Convention held in Madras; Bengal Motion Picture
Association formed in Calcutta.
1937 Indian Motion Picture Producers Association founded in Bombay. Sant Tukaram receives
special jury mention at Venice Film Festival;
First Colour Film "Kisan Kanya" is released by Ardeshi Irani
1938 South Indian Film Chamber of Commerce formed in Madras. Indian Motion Picture
Distributors' Association set up in Bombay
1939 Indian Film Industry Celebrates Silver Jubilee
1940 Film Advisory Board Set up in Bombay
1942 Production hit due to shortages of raw film and equipment
1946 Chetan Anand's Neecha Nagar shown at the Cannes Film Festival
1949 Amendment in Indian Cinematograph Act 1918 to include censorship classification for
"Adult" and "Unrestricted exhibition of Film"
1951 Formation of Central Board of Film Censors and Film Federation of India
1952 First International Film Festival held in India Travelling to Bombay, Calcutta, Delhi and
Madras.
Cinematograph Act, 1952 is passed by the parliament replacing 1918 act.
1954 P.K. Atre's Marathi Film Shyamchi Aayee awarded President's Gold Medal as the best
feature film of 1953
1956 Pather Panchali awarded Best Human Document Indian Talkie (1913-56)
1957 Mehabob's landmark film "Mother India" a huge box-office success and nominated for
best foreign film by Academy of Motion Picture Arts and Sciences, Hollywood
1960 Film Finance Corporation formed with authorised capital of Rs 1 Crore
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1962 Second International Film Festival is held in New Delhi;
1963 Indian film industry Celebrates Golden Jubliee
1964 National film Archive of India set up in Pune
1970 Devika Rani is first recipient of DadaSaheb Phalke Award.
1971 Production of feature films jumps to 432 making Indian film largest in the world
1972 Over 90% of Hindi Films switch over to colour with raw film manufactured in India
1973 Government started imposing 250% of import duty on raw film
1976 Ramesh Sippy’s sholay, the first curry-western set a new box office record
1980 Film Finance Corporation and Indian Motion Picture Export Corporation merge to
become National Film Development Corporation
1983 Bhanu Athiaya wins oscar for costumes designed for Richard Attenborough's Gandhi.
Mrinal Sen's Khajri received special appreciation in cannes film festival
1988 Indian Cinema Industry celebrates Platinum Jubliee
1992 American Academy of Motion Picture Arts and Sciences awards Satyajit Ray Oscar for life
time achievement
1995 Centenary of World Cinema
2003 Centenary of Indian Cinema
2009 AR Rahman won 2 Oscars for "Slumdog Millionaire"
2014 First India's Photorealistic Motion Capture Film "Kochadaiiyaan" directed by Soundarya
R Ashwin was released
Hindi Cinema
This language movies have more market
due to the fact that larger population
understands the language, even though
the contribution in all the respects from the
beginning is from all over the country.
Hindi Cinema is enriched by great
producers and Directors like Himanshu rai,
V Shantaram, P.C. Barua, Bimal Roy, Prithiv
Raj Kapoor, Mehaboob Khan, K. Asif
Gurudutt, Raj Kapoor, Man Mohan Desai
and B.R. Chopra. They have also set the
trend in the Hindi cinema, its themes and
contributed on contemporary issues and
the society.
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MS Subba Laxmi
The actors like Ashok Kumar, Devika Rani,
Raj Kapoor, Nargis, Meena Kumari, Jai Raj,
and Nirupa Rai became legends and
attained international fame.
Great Singers like Bade Ghulam Ali Khan,
D.V. Paluskar, and MS Subba Laxmi acted
in movies in the initial years of talkie
cinema. MS Subba Laxmi became
synonymous to Meera and became
legend forever. Other singing stars like KL
Saigal, Noorjahan, Santa Apte, Suraiya,
Kanan Bala, are few singing stars of yester
years. The Industry produced Melodious
singers like Mangeshkar sister, Mukesh,
Mohammed Rafi etc.
Telugu Cinema:
Not only a prolific industry, but also
produced stalwarts like HM Reddy who was
associated with the industry right from
Kolhapur and directed legends like Prithiv
Raj Kapoor. B.N. Reddy, K.V. Reddy,
Vendantham Raghavaiah, K.B. Tilak, Dasari
Narayana Rao, K. Kranthi Kumar, P Pulliah,
Bhanumathi and her husband
Ramakrishna, Vijaya Nirmala, K Viswanath
and Bapu are the famous directors of the
Telugu industry. Ironically the first Tamil
cinema had Telugu songs.
Actors like Sarada who received urvasi
three times, NT Ramarao, who made a
difference in India in Politics is a product of
this field. L.V. Prasad brought laurels to Hindi
Cinema is from this field. “Baahubali”
directed by SS Rajamouli has broken all the
earlier records in many respects.
It was Raghupathi Venkaiah who owned
photo studio took to screening of Silent
movies in tent cinema and later built the
Gaiety cinema in Madras and
BN Reddy
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produced the movie Bhishma Pratigya and
is known as Father of Telugu Cinema. P.V.
Das an exhibitor from Repalle in Andhra
Pradesh built the first talkie studio named as
Vel Pictures and produced Sita Kalyanam
in the year 1935.
Surabhi Kamala Bai was the leading lady of
Bhakta Prahlada 1931 followed by P
Kannamba in Harishchandra and Dasari
Kotiratnam in Sakkubai both in 1935. Dasari
Kotiratnam became the first woman
producer by producing Anasuya,
Kanchanamala, Tanguturi Suryakumari,
Rushyeendra Mani, are few names of
yester years leading ladies. The Industry
produced internationally famed actors like
S.V. Ranga Rao, who received Best Actor
Award in Jakarta Film Festival, K. Jaggaiah,
Savithri, Anjali Devi, Sri Devi, Jayapradha,
Nageswara rao, singer stars like
Bhanumathi, S Varalaxmi, Santakumari,
Ghantasala, P.B. Srinivas, S.P. Bala
subramanyam, Susheela and music
directors like S Rajeswar Rao, Adi Narayana
Rao, S Dakshinamurthi. The actors, directors
and other technicians have also worked in
other south Indian language movies.
Tamil Cinema:
The silent cinema was started with Nataraja
R Mudaliar’s Keechaka vadham in 1917
and first talkie cinema kalidas was made in
1931 which had Telugu songs and Tamil
Dialogues and TD Rajya Laxmi was the
leading lady. Kalidas is followed by Kalava
in 1932 which is a full length Tamil Talkie.
Prakash Raghupathi son of Raghupathi
Venkayya made few silent movies
including Saranga Dhara, Bhojaraja,
Sivaji Ganesan
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AR Rahman with Oscars
Gajendra Moksham etc. Musicians and
other singers like K.B. Sundarambal in
“Avvaiyar”, Veena Maestro, S.
Balachandar in “Seetha Kalyanam”, M.S
Subba Laxmi in “Meera”, writer
Papanasam Sivan in “Kuchela”, MM
Danda Pani Desikar in “Pattinattar” acted
and sang their songs. Madras, the capital
of the province became the capital of film
industry and all south Indian language films
were produced from the studios in madras.
The cinemas were also dubbed into other
languages or remade. S.S. Vasan’s
Chandra Lekha, Anjali Devi’s Swarna
Sundari were made on lavish scale.
Kalam Mari Pochu, Rakta kannir, Avvaiyar,
Para Sakti, Veera pandya katta Bomman
were few cinemas to mention in the black
and white days. Perhaps it was Sridhar who
produced “Sivandamann” as a
simultaneous production in Tamil, Telugu
and Hindi for the first time in India.
The industry used this media to propagate
certain political and social movements and
MGR and Jayalalita became legends in
cinema and a stalwarts in politics.
The well-known directors like K
Balachandar, Bharathi raja, Balu
mahendra, K Bhagya Raj, Mani Ratnam,
and Sankar have directed everlasting
movies. The industry produced great music
directors like Mahadevan, Viswanathan,
Ramamurthy, Master Venu, Ileya Raja and
AR Rahman who received two Oscar
awards for his tune in “Slumdog millionaire”.
Actors like Sivaji Ganesan who received
Best Actor Award in Cairo Film festival in
1960, Gemini Ganesh, Kamal Hasan, M.R.
Radha, Rajinikanth, and Comedians like
Nagesh are the products of this Industry.
Bengali Cinema:
Devika Rani
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Satyajit ray
Bengal never had dearth of writers. It was
the Bengali story that was taken as theme
in many languages. Intellectual Bengal
contributed to the cinema in every way
that is possible and lead the way to the
purposeful cinema. This industry sowed the
seeds of realistic cinema in the country.
It was Hiralal Sen who started making short
films in 1913. Being the capital of British Raj,
it has the advantage of exposure to
western technology. The Bengali Cinemas
are always a head of Times and made the
cinema irrespective of the commercial
motives.
Dhiren Ganguly (DG) Head Master of
Nizam College, Hyderabad was one of the
earliest founders of cinema in Bengal acted
in “Bilet Pherat” in 1921. Setup British
Dominion Film Company in 1928 and
Promoted Devika Rani, P.C. Barua and
others.
Madan Theatres of JF Madan made the
silent movie Bilwamangal, the first Bengali
silent cinema in 1919. B.N.Sircar established
New Theatres Ltd in 1930. Talkie films made
in 30’s were Chandidas 1932, Devadas
1935, Mukthi 1937, and President 1937.
Madan Theatres produced the first talkie
cinema Jamai Shasti in 1932. Satyajit ray
received life time achievement award in
1992 from Oscar, received Silver bear in
Berlin 1981, Bharata Ratna and Order of The
French Legion.
The Bengali cinema made Rabindra
Sangeeth popular through its cinema and
Pankaj Mullick was the first to attempt this.
Singers like K.L. Saigal, K.C. Dey, Geeta
Dutt, Hemanth Kumar, Kishore Kumar and
music directors like Salil Chaudhuri, Syamal
Mitra, and Anil Biswas. Great directors like
Satyajit ray, Mrinal sen, Gowtham Ghosh,
Ritwik ghatak, Rithuparno Ghosh, Aparna
Sen, Anirudh Roy Chaudhuri are all the
products of this industry.
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Well Known actors like Utpal Dutt, Uttam
Kumar, Suchitra Sen, Mithun Chakravarthi,
and Sharmila Tagore had their origin from
Bengali Cinema.
Marathi Cinema:
Indian Cinema had its beginning in
Kolhapur, Nasik and Pune. The greatest
events in evolution of Indian Motion Picture
Production are associated with Marathi
artists, Directors and Producers. Marathi
theatre contributed a lot for the cinema.
It has glorious past in every respect with
cinema studios like Prabhat, Raj Kamal,
Imperial Studios, Bombay Talkies Limited,
Wadia Movietone. Great Personalities like
V. Shanta Ram, Babu Rao Painter, Dwaraka
Das, P.K. Atre, Raja Paranjape, Sampat,
Ardeshir Irani, Bhogilal, KM Dave,
Chandulal, J. Shah are associated with the
industry. Pundalik was produced in 1912.
Raja Harishchandra, Mohini Bhasmasur,
Satyavan Savitri were the earliest silent era
cinemas and Ayodhyecha Raja is the first
Talkie film in Marathi in 1932. Sant Tukaram
was screened in Venice International film
festival in 1936/37.
In 1953 Shyamchi Aaee received the
president’s gold medal. In 2004 Shwaas
was an official entry to Oscars. Harish
Chandra Chi factory was an official entry in
2012 for academy awards.
Kamal Bai Gokhale was the first lady to act
in silent movies. Shanta Apte was the
singing star. Leading ladies in Marathi
Cinemas are Jayasree, Sandhya, Lalitha
Pawar, Dina Pathak, and Smita Patil. Master
Vinayak an actor and producer was
associated with Prabhat Films and had a
long career. Sri Ram Lagoo, Nana Patekar,
Amul Palekar, Atul Kulakarni, Vikram
Gokhale have theatre background and
worked in Marathi cinema.
Kannada Cinema:
Dr. Raj Kumar
Kannada Cinema Market is rather small
compared to other language cinema but
had its beginning in silent era with Gubbi
Veeranna’s efforts of starting Karnataka
film Studio in 1928 and produced
“Harimaya”. Another film maker Hari Bhai
Desai started Surya Film Company in 1929.
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Page 18 Raju and Prasad Chartered Accountants
Sathi Sulochana in 1934 was the first talkie
film.
In later years the industry produced great
actors like Raj Kumar, Vishnu Vardhan,
Ananth Nag, Sankar Nag, Ravichandran
and leading ladies B Saroja Devi, Jayanthi,
Bharathi and Kalpana. The industry has
theatre background and great writers like
Shivaram Karanth, Directors like BS Ranga,
Girish Kasaravalli, K Puttanna, Girish Karnad
and G.V. Iyer made their mark
internationally through this industry.
Offbeat Cinema
Cinema in India is originally based on
Mythology, History, Family Stories, and Folk
Stories. Later social issues. Patriotism,
reformist outlook were introduced in the
themes. The Commercial Movies with
formula are more acceptable in the Box
Office even now.
The offbeat cinemas are also called
parallel cinema or New Wave Cinema.
Such movies were tried in Bengali,
Malayalam, Kannada and Marathi. Bimal
Roy’s “Do Bigha Zameen” and Guru Dautt’s
“Pyasa” in 50s were successful and also it
was beginning of the new genre. Later
many directors in Hindi like Hrishikesh
Mukherjee (Anand), Gulzar (Koshish), Basu
Chatterjee (Choti Se Baat), Basu
Bhattacharya (Theerikasam), have worked
on low budget movies and tried new faces.
Shyam Benagal’s Ankur, Nishant, Bhumika,
Manthan have set the trend for new wave
cinemas in 1970s. Govind Nihlani’s “Tamas”
though brought out as a TV serial was
realistic and “Garam Hawa” by M.S. Sathyu
were based on the partition of India.
Aakrosh by Govind Nihalani created
sensation in this line of cinema.
Mrinal Sen, Aravindan, Adoor Gopala
Krishnan, Girish Kasaravalli, K.S. Narayana,
Narasing Rao are well known directors who
directed the new wave cinema. The
cinemas to mention are samskara,
Gajjepuja, Chomana Dudi, Sara Panjara in
Kannada, Nimajjanam, Daasi, Urummadi
Batukulu in Telugu, Chemmeen,
Uttarayanam, Kodiyettam, and Thampu in
Malayalam. The wave has not been
continued and the realistic cinema is blown
out by the strong winds of multi starrer
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Page 19 Raju and Prasad Chartered Accountants
cinemas even found it difficult to get
theatres to screen.
Film Society Movement in India:
Lumiere Brothers
Again it is Lumiere Brothers who started the
first film society in 1920 in Paris. The
movement is aimed at exchanging the
movies from country to country for
screening through this societies to
understand the trends in cinema in various
countries. Internationally the movement
spread to various countries. In India first film
society was started in Punjab under the
chairmanship of Sir Sikander Hyat Khan in
1930, later the societies were started in
Bombay 1937, Calcutta 1947, Delhi
1956/57, Madras 1957, and Hyderabad
1963. Now it is spread to various cities and
towns all over the country. Many embassies
are helping in screening the movies of
respective countries. Federation of Film
Societies of India is formed in the year 1959
under the chairmanship of Satyajit Ray.
Presently more Indian language films are
screened in place of international films.
Children Film Festival:
Children film Society was formed in 1955
with the encouragement of the Prime
Minister Sri Jawaharlal Nehru. The purpose is
to produce movies with themes and stories
that involve children and their interest.
About 250 films were produced in 10
languages as per the children film society
of India since its inception. First Movie
“Jaldeep” received first prize in Venice Film
Festival in 1957. India participates in
international film festivals and also
conducts childrens International and
National Film Festivals. “Heda Hoda” (2003)
has received many international awards in
Vancouver, Hamburg, La Matatena,
Mexico, Cine Jeune Delaon France, Cairo
Film Festival, Ningbo Shanghai China,
Bronze Remi award, at world fest USA.
Studios:
Industry can be divided into production
and exhibition. Production includes
shooting, processing, recording, dubbing
etc. The studios in India have geared up
from Silent cinemas to talkie cinemas. Some
of the original and major studios include-
Prabhat Studios (V Damle, Fatelal
and Dhube),
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Page 20 Raju and Prasad Chartered Accountants
Imperial Studios (Ardesher Irani),
New Theatres (B.N. Sircar),
Madan Studios (J.F. Madan),
Raj Kamal Studios (V Shanta Ram),
Gemini Studios (S.S.Vasan),
Vijaya Vauhini Studios (Nagi reddy
and Chakrapani)
Bharani Studios (P. Ramakrishna)
Sobhanachala Studios (Raja of
Mirjapuram),
Sarathi Studios (Raja of Challapalli).
Ramoji Film Studios is the one stop shop for
the industry where one can walk into the
studio with a story and can walk out with a
completed film.
Yester year’s studios had a system of
contract with technicians, Artists, Directors,
and others. The system worked well. The
directors also worked with team of people
and best out of the team was achieved,
quality of cinema with cost controls was
possible. Later the system turned into star
system and cinema is dependent on stars.
The costs of the cinema making have gone
up and technical standards picked up.
Exhibitors:
The Cinema halls construction in rural areas
is encouraged by Tamil Nadu, Andhra
Pradesh and Telangana. Originally the
screens were available in Tier I and Tier II
Cities. Gradually the cinema halls have
increased. The screen size has gone up
from 35MM to 70MM. Circarama,
Cinerama cinema scope theatres have
sprung up. Present system is multiplexes with
more number of screens in one place. 3D
Screens and Digital screens have gained
popularity. As per the statistics of film
federation of India Total Number of Screens
in country (in 2010-11) are 10167. Undivided
Andhra Pradesh leading with 2809
followed by Tamil Nadu 1546, Kerala 1015,
Uttar Pradesh 970, Karnataka 950,
Maharashtra (Excluding Vidarbha) 504,
West Bengal 330, Gujarat 291, Bihar 269,
Jammu and Kashmir 267, Madhya Pradesh
201 and other states put together 1015.
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Page 21 Raju and Prasad Chartered Accountants
Government Initiatives:
In the year 1922-23, Diwan Bahadur
T. Rangachari committee, later S.K. Patil
Committee have made recommendations
for encouragement of Indian Cinema
Industry. Based on the recommendations,
measures have been taken to encourage
the industry and following institutions were
set up to regulate the industry.
1949 Film Censor became federal function
1951 Central Film Censor Board was set up 1952 Cinematograph Act was enacted 1953 National Film Award Scheme was introduced 1954 Annual State Awards were introduced 1955 Children Film Society is established 1960 Film Institute of India and Film Finance Corporation 1963 Indian Motion Pictures Export Corporation 1964 National Film Achieves
Definitely an award is a reward for the
good direction, good cinematography,
good actors and other people who have
worked for the film. Government of India
started the Annual Awards in 1954 with
Gold and Silver medals, later converted as
Swarnakamal and Rajat Kamal. Various
states also instituted similar awards at state
level.
Along with the government, there are
many organisations which are promoting
the film industry by giving awards. Some of
the popular awards to mention are-
Oscar (International)
National Film Awards
Film Fare
IIFA (International Indian Film Academy)
Nandi Awards
Dadashaeb Phalke Awards and
Apsara Awards.
B.N. Reddy and B Nagireddy are the persons
belonging to the same family but both
received Dadasaheb Phalke award in the
years 1974 and 1986 respectively. Same is
the case with Prithivi Raj Kapoor (1971) and
Raj Kapoor (1987) father and son duo.
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Page 22 Raju and Prasad Chartered Accountants
Contribution to the economy:
Indian Film Industry is contributing to the
country’s economy by way of generating
employment, revenue to the government
(tax collections), tourism development
etc
Employment in Film Industry
S.No Year Employment
1 2013 160800
2 2014 179300
3 2015 199900
4 2016 222900
5 2017 248600
Source: Media for Entertainment and Skills council
The Size of the industry in 2014 was Rs 126.4
billion and is expected to reach Rs 204
Billion in 2019 as per the Ministry of
Information and broadcasting.
Incentives:
Government of India and Indian Banks
Association (IBA) in 2001 gave the
guidelines for financing the industry.
In 2015-16 under Pradhan Mantri Kausal
Vikas Yojana (PMKVY) 13,272 candidates
have been trained for this industry.
Government of India is setting up Film and
TV Institute of India (FTII) in Arunachal
Pradesh.
Government of India is also setting up
National Centre of excellence in
Hindi43%
Tamil19%
Telugu17%
Other regional Languages
14%
International7%
BOX OFFICE REVENUE SPLIT
Source:Motion Picture Association (2015)
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Page 23 Raju and Prasad Chartered Accountants
Animation, Gaming, and Visual effects
(NCOE) in Mumbai.
Income tax and Entertainment tax:
Entertainment tax (ET tax) will be levied by
the state governments/local bodies and
calculated on the ticket cost.
Government of Andhra Pradesh levies ET
tax in three slabs, 21% for the films
produced outside the state; 8% for the low
budget films produced in the state, where
as the rate is 16% for big budget films
produced in state. The states of Assam
and Gujarat has the tax slabs based on
the population in that region. Himachal
Pradesh, Jammu and Kashmir, Punjab
states do not levy ET tax entirely. Tamilnadu
and Karnataka do not levy ET tax for their
language movies while the rate is 15% and
40% for other language films. The rate s
ranging from 20% to 60% in some other
states. (Source: Film federation of India)
After the implementation of GST in India,
the entertainment tax levied by the state
governments (other than tax levied by the
local bodies) are subsumed into GST. Rate
of GST is 18% when the price of admission
ticket is less than Rs 100. When it is more
than Rs 100, the rate is 28%.
As per Rule 9 of the income tax rules 1962,
the Royalty received in respect of any
Literary or Artistic works like Music will be
taxed entirely i.e., 100% in a financial year,
if the time taken for completing the same
is less than 12 months. If the author has
taken more than 12 months but less than
24 months the income shall be offered to
tax in two financial years(1/2 in a year)
and if the time taken is more than 24
months, then it shall be taxed in three
years.(1/3 in a year).
As per Rule 9A and Rule 9B of the income
tax rules 1962, the deduction in respect of
expenditure incurred in producing feature
films and expenditure on acquisition of
distribution rights of feature films will be
amortised as below:
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Page 24 Raju and Prasad Chartered Accountants
S.No Case Deduction Allowed
1 If the Producer or Distributor has sold entire rights 100% of Expenditure will be allowed as deduction
2 If rights are not sold entirely But- i) Movie released atleast 90 days before the end
of the previous year
ii) Movie Not released 90 days before the end of the Previous year
100% of Expenditure will be allowed as deduction Deduction will be restricted to Expenditure incurred and Sums received from sale
Problems and Challenges:
1. The Industry follows mostly the cash
system and it is not transparent in
financial matters.
2. The statistics of revenue show that
about 11.5% is the year on year growth
rate. Perhaps this can be better if the
industry is transparent.
3. Though the number of films produced
are the highest in the world, the
revenue is low compared to advanced
countries with lesser population.
4. Piracy hits the industry especially in
Metro and Tier I cities.
5. “Make in India” has provided certain
incentives for foreign film makers in
India. Country can be a destination for
film making internationally provided
the clearances are fast.
6. While DTH (Direct To Home)
encourages viewing of movies, it also
has negative impact on screening
other than local language movies in
Tier II and Tier III towns.
7. VFX use is costly and only Big Budget
movies can afford this.
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Page 25 Raju and Prasad Chartered Accountants
8. Export Market to be explored
throughout the world with Indian
population spread across the globe.
9. Film society movement should be
encouraged to help the purposeful
cinema.
Cinema industry is evergreen in terms of
Themes, Technology, Personalities and
approach. India’s diversity itself is a great
strength for this sector.
- Team at Raju and Prasad
It is not easy to tell about the industry with
so many languages with a century old active
history. It is only an attempt. If there are any
omissions, it is not intentional.
Historical facts are collected from B.D.
Garga’s Book “So Many Cinemas”
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Page 26 Raju and Prasad Chartered Accountants
Policy WatchCompany Law
Relaxation of additional fees and
extension of last date of filing FORM
AOC 4 and AOC 4 (XBRL)
The Ministry of Corporate affairs vide
Circular No 13/2017 dated 26th October
2017 has extended the due date for filing
Form AOC XBRL (For IND AS Applicable
companies) for the financial year 2016-17
without additional fees till 31st March,
2018.
The Ministry of Corporate affairs vide
Circular No 14/2017 dated 27th October
2017 has extended the due date for filing
Form AOC 4(For NON IND AS Applicable
companies) for the financial year 2016-17
without additional fees till 28th November,
2017.
http://www.mca.gov.in/Ministry/pdf/Gen
eralCircular14_28102017.pdf
http://www.mca.gov.in/Ministry/pdf/Gen
eralCircular13_26102017.pdf
Indirect Taxes
Waiver of late fee payable for
delayed filing of FORM GSTR-3B for
Aug & Sep, 2017.
Central Board of Excise and Customs vide
Notification No 50/2017 (Central Tax)
dated 24th October 2017 has waived the
late fee which is payable under Section
47 of Central Goods and Services Tax
(CGST) on account of delay in filing of
return in FORM GSTR – 3B for the months of
August and September. The late fees will
be refunded to the assessee’s who have
already paid the late fees in this regard.
http://www.cbec.gov.in/resources//htdo
cs-cbec/gst/notifctn-ct-50.pdf
Exemption from payment of Goods
and Services Tax under reverse
charge mechanism covering under
section 9(4) of CGST Act, 2017.
Central Board of Excise and Customs vide
Notification No 38/2017 (Central Tax)
dated 13th October 2017 has exempted
the registered taxable person (Recipient
of Supply) from paying the GST on taxable
supplies received from unregistered
person. It has also stated that the
notification will be applicable upto 31st
March, 2018.
http://www.cbec.gov.in/resources//htdo
cs-cbec/gst/notfctn-38-cgst-rate-
english.pdf
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Page 27 Raju and Prasad Chartered Accountants
Notified Deemed Exports under
Section 147 of CGST act, 2017
Central Board of Excise and Customs vide
Notification No 48/2017 (Central Tax)
dated 18th October 2017 has notified the
list of supplies to be treated as deemed
exports which are as follows:
S.No Description of Supply
1 Supply of goods by a registered
person against Advance
Authorisation
2 Supply of capital goods by a
registered person against Export
Promotion Capital Goods
Authorisation
3 Supply of goods by a registered
person to Export Oriented Unit
4 Supply of gold by a bank or Public
Sector Undertaking specified in the
notification No. 50/2017-Customs,
dated the 30th June, 2017 (as
amended) against Advance
Authorisation.
http://www.cbec.gov.in/resources//htdo
cs-cbec/gst/notfctn-48-cgst-english.pdf
Rate of Central tax and integrated
tax prescribed for supply of taxable
goods by a registered supplier to a
registered recipient for export:
goods by a registered supplier to a
registered recipient for export:
Central Board of Excise and Customs vide
Notification No 40/2017 of Central Tax
(Rate) and Notification No 41/2017 of
Integrated Tax (Rate) dated 23rd October
2017 has prescribed 0.05% as rate of GST
for intra state supply and 0.01% as rate of
GST for Interstate supply subject to
following conditions which are as follows:
The Registered supplier should supply
the goods to the registered recipient
on a tax invoice.
The Registered recipient shall be
registered with the export promotion
council or a commodity board
recognised by the department of
commerce
The registered recipient shall move the
said goods from the place of
registered supplier
o Directly to the Port, Inland Container
Deport, Airport or Land Customs
Station from where the said goods
are to be exported;
o Directly to a registered warehouse
from where the said goods shall be
move to the Port, Inland Container
Deport, Airport or Land Customs
Station from where the said goods
are to be exported;
The registered recipient shall export
the said goods within a period of
ninety days from the date of tax
invoice by a registered supplier.
http://www.cbec.gov.in/resources//htdo
cs-cbec/gst/notfctn-40-cgst-rate-
english.pdf
http://www.cbec.gov.in/resources//htdo
cs-cbec/gst/notfctn-41-igst-rate-
english.pdf
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Page 28 Raju and Prasad Chartered Accountants
Exempt persons making inter-State
supplies of taxable services from
registration under section 23(2)
Central Board of Excise and Customs vide
Notification No 10/2017 (Integrated Tax)
dated 13th October 2017 has stated that
a person making interstate supply of
services whose turnover is upto 20 lakhs
(to be computed on all India basis) shall
be exempted from compulsory
registration under the CGST act, 2017. The
Turnover limit is Rs 10 lakhs for “Special
Category States”.
http://www.cbec.gov.in/resources//htdoc
s-cbec/gst/notfctn-10-igst-english.pdf
SEBI
Criteria for Settlement Mode of
Commodity Derivative Contracts
Securities and Exchange Board of India
vide Circular No SEBI /HO /CDMRD /DMP
/CIR /P /2017/116 has prescribed the
criteria for settlement mode of
commodity derivative contracts which
are as follows:
The first preference of settlement type
shall always be by the way of physical
delivery.
Any exemption from the above i.e.
cash settlement of commodity
derivatives contract, may be
considered only in following scenarios
with a proper justification:-
o Physical delivery is difficult to implement
due to any reason, which may inter-alia
include the following:
commodity is intangible
commodity is difficult to store may be
due to low shelf life or inadequate
storage infrastructure
it is difficult to physically handle and
transport the commodity due to
inadequate logistics and transport
infrastructure
o There is availability of reliable
benchmark price of the commodity
which can be used as reference for
settlement price. Exchanges shall satisfy
Page 2 of 2 themselves that the
reference spot price is robust – fair
indicator of prevailing prices and not
susceptible to any
distortion/manipulation.
o Subject to the above conditions, both
cash settled and physically settled
derivative contracts on the same
commodity may also be considered for
trading, in case basis of price discovery
of the proposed contracts is different.
http://www.sebi.gov.in/legal/circulars/oct-
2017/criteria-for-settlement-mode-of-
commodity-derivative-
contracts_36281.html
Review of Block Deal Window
Mechanism:
The Securities and Exchange Board of
India Vide Circular CIR/MRD/DP/118/2017
dated 26th October 2017 has reviewed
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Page 29 Raju and Prasad Chartered Accountants
the block deal window mechanism which
is as follows:
Morning Block deal window:
This window shall operate between 08:45
AM to 09:00 AM. The reference price for
execution of block deals in this window
shall be the previous day closing price of
the stock. The stock exchanges shall set
their trading hours between 08:45AM to
5:00 PM with a stipulation that between
08:45AM and 09:00AM, the stock
exchanges shall operate only for
executing trades in the block deal
window.
Afternoon Block Deal Window:
This window shall operate between 02:05
PM to 2:20 PM. The reference price for
block deals in this window shall be the
volume weighted average market price
(VWAP) of the trades executed in the
stock in the cash segment between 01:45
PM to 02:00 PM. Between the period 02:00
pm to 02:05 pm, the stock exchanges shall
calculate and disseminate necessary
information regarding the VWAP
applicable for the execution of block
deals in the Afternoon block deal
window.
The minimum order size for execution of
trades in the Block deal window shall be
Rs.10 Crore.
http://www.sebi.gov.in/legal/circulars/oct-
2017/review-of-block-deal-window-
mechanism_36338.html
Direct tax
Notified place of Historic importance
and a place of public worship of
renown throughout the state of Tamil
Nadu
The Central Board of Direct taxes vide
Notification No 87/2017 notifies Arulmigu
Kapaleeswarar Thirukoil, Mylapore,
Chennai," to be place of historic
importance and a place of public
worship of renown throughout the state of
Tamil Nadu for the purposes of the Section
80G of the Income tax act 1961. The
Deduction of 100% of donation to above
charitable institution is allowed as per the
said section in this regard. https://www.taxmann.com/filecontent.asp
x?Page=CIRNO&id=104010000000052910&i
sxml=Y&search=&tophead=true&tophead=
true
Notifying the recognised association
for the purpose of Section 43(5) of
income tax act, 1961
The Central Board of Direct taxes vide
Notification No 91/2017 dated 30th October
2017 has notified “Indian commodity
Exchange Limited (PAN:AABCI9479D)” as
recognised association for the purpose of
Section 43(5) of the income tax act, 1961.
So now any derivative transaction entered
with Indian Commodity Exchange Limited
will not be treated as speculative
transaction.
https://www.taxmann.com/filecontent.asp
x?Page=CIRNO&id=104010000000052913&i
sxml=Y&search=&tophead=true&tophead=
true
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Page 30 Raju and Prasad Chartered Accountants
Verdicts
Direct Tax As the Income Computation and
Disclosure Standards (ICDS) are
contrary to the judicial precedents
laid down to interpret and explain the
statutory provisions contained in
Income tax act, the ICDS to such
extent it is contrary is not valid.
- Vide Decision of Honorable High Court of
Delhi Vide Chamber of Tax Consultants Vs.
Union Of India
The Honorable High Court of Delhi Vide
Chamber of Tax Consultants vs. Union of
India held the following:
Article 265 of the Constitution of India
states that no tax shall be levied or
collected except under the authority of
law. The Section 145(2) does not permit
changing the basic principles of
accounting that have been recognized
in various provisions of the Act unless, of
course, corresponding amendments
are carried out to the Act itself.
In case the ICDS seeks to alter the
system of accounting, or to accord
accounting or taxing treatment to a
particular transaction, then the
legislature has to amend the Act to
incorporate desired changes.
The Central Government cannot do
what is otherwise legally impermissible.
Therefore, the provisions of ICDS to the
extent it is contrary to the laid down
judicial precedents to interpret and
explain the statutory provisions
contained in the income tax act are
invalid and it is struck down.
https://www.taxmann.com/filecontent.asp
x?Page=CASELAWS&multipage=false&id=1
01010000000177494&isxml=Y&search=&top
head=true&tophead=true
Quoting of Aadhaar Number is
mandatory as per section 139AA of
the income tax act, 1961 while filing
the return of income
- Vide Decision of Honorable High Court of
Madras in Thiagarajan Kumararaja vs.
Union of India
The Honorable High Court of Madras vide
Thiagarajan Kumararaja vs. Union of India
held that individual assessee cant file the
return of income if he has not quoted the
Aadhaar number. In other words, Every
person who has been allotted permanent
account number as on the 1st day of July,
2017, and who is eligible to obtain
Aadhaar number, shall intimate his
Aadhaar number to the authority failing
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Page 31 Raju and Prasad Chartered Accountants
upon which the PAN of the assessee will
be deemed to be invalid.
https://www.taxmann.com/filecontent.asp
x?Page=CASELAWS&id=1010100000001775
34&isxml=Y&search=&tophead=true&tophe
ad=true
Non Resident Assessee can’t be
taxed in India on the ground that
support services has been received
from the Indian subsidiary as there is
no permanent establishment in India.
- Vide Decision of Honorable Supreme Court
of India Vide Assistant Director of Income tax-
1, New Delhi vs. E-funds IT Solutions Inc.
The Honorable Supreme Court of India
vide Assistant Director of Income tax-1,
New Delhi vs. E-funds IT Solutions Inc. held
that even though Indian Subsidiary is
rendering services to American holding
company, which in turn enabled the
American Holding company to render the
services to their clients in abroad, the
American holding company can’t be
taxed in India through section 9 of the
income tax act 1961 and Article 5 of DTAA
because there is no Permanent
Establishment in India.
https://www.taxmann.com/filecontent.asp
x?Page=CASELAWS&id=1010100000001773
09&isxml=Y&search=&tophead=true&tophe
ad=true
Assessing Officer can’t reopen the
assessment on the invalid grounds.
- Vide Decision of Honorable High Court of
Delhi Vide ESS Distribution (Mauritius)
S.N.C.E.T Vs. Assistant Commissioner of
Income tax, Circle 1(2)(2), International
Taxation, New Delhi
The Honorable High Court of Delhi Vide
ESS Distribution (Mauritius) S.N.C.E.T Vs.
Assistant Commissioner of Income tax,
Circle 1(2) (2), International Taxation, New
Delhi held that the during the relevant
year, the assessee (ESS Distribution) has
not made any transaction with the party
(Client) and accordingly no income have
offered to tax with respect to the said
party. Since the said transaction does not
exist in the relevant year, AO can’t open
the assessment on the said ground.
https://www.taxmann.com/filecontent.asp
x?Page=CASELAWS&id=1010100000001774
03&isxml=Y&search=&tophead=true&tophe
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Page 32 Raju and Prasad Chartered Accountants
1►►► PHOTOGRAPH OF THE MONTH
Ibis and Spoonbill in the company of Crocodile at Ranganathittu - Clicked by M Siva Ram Prasad
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